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What is the SwissBorg Token?

April 20, 2020

Introduction: CHSB, the SwissBorg Token

The CHSB token is an ethereum (ERC20) multi-utility token that powers the SwissBorg Ecosystem. The CHSB token aimed to challenge the relationship between people and their investment manager. You can purchase CHSB Tokens on the SwissBorg wealth app.

The crypto space is designed to inspire by innovative thinking that seeks to correct the unfairness and inequality that existed in the traditional space. We want to give the opportunity to an ordinary individual to take control of their wealth without the need of financial experts. We see a future that will use technology to connect the world and make financial investments,  transactions and participation more equitable for token-holders, communities and nations. The CHSB is the masterpiece of that vision.

SwissBorg Wealth App users that hold CHSB Token benefit from special privileges (please refer to the section named utility of that article)

Characteristics 

Why will you trust a company to offer access to a new investment world if this company can't make this change for itself? At SwissBorg we are proud and grateful that we are not backed by a handful of wealthy venture capitalists but by nearly twenty-five thousand individual contributors from the four corners of the globe who each bought our CHSB tokens.

  • Family group: ERC-20 - Utility token. Digital currencies like Bitcoin use encryption techniques to regulate the generation of units of currency and verify the transfer of funds. Because the CHSB has been built on top of the ethereum blockchain, it directly benefits from its scalability and security. CHSB tokens can be stored directly into an ethereum wallet. 
  • All CHSB have been minted during a Token Generation Event or ICO, with a total maximum supply of 1,000,000,000 CHSB. (No more CHSB will be ever created on the Ethereum Blockchain)
  • Unlike protocol layer tokens such as Bitcoin or Ethereum, ERC-20 utility tokens provide a layer to build consumer platforms. For instance and one of the most successful case studies is the BNB token, a utility token that works just like discount coupons when trading on the Binance exchange. This utility token also includes voting and has incorporated a buyback-burn mechanism. Binance was the best performing token in 2018 and ranked #6 in 2019. 




CHSB Token Economics

The most important question to ask yourself before buying a cryptocurrency is: what is the purpose of the cryptocurrency I’m buying?

Bitcoin miners are incentivized to mitigate the double-spend problem.  Ethereum miners are incentivized to operate a distributed application development platform. These incentive mechanisms and operational governance are called token economics.

Token utilities are a set of mechanism designs to grow the ecosystem: 


Value

The value of a utility token depends primarily on the demand for goods or services transacted on the platform and the number of tokens in circulation. Tokens are divisible and the prices of goods or services in terms of tokens can be adjusted, i.e., the price of a token in fiat currency terms can move independently of the price of a particular good or service transacted on the platform. The value of tokens is typically enjoyed by the users. Sources: (https://assets.ey.com/content/dam/ey-sites/ey-com/en_gl/topics/emeia-financial-services/ey-the-valuation-of-crypto-assets.pdf)

Buy-Back & Burn mechanism

The CHSB Buyback Burning Program is the last part of the equation on, what we believe to be, a successful token economy. In macroeconomics, the law of supply and demand is one of the fundamental drivers and “backbone of the entire market economy” which will equally translate very well to our own token economy. Simple mathematics: (-) Less supply and (+) more demand = rise in value.



An additional mechanism such as Staking to become Premium are increasing the likelihood of CHSB price increase over time as the mechanism reduces the circulating supply

Future

We are not only passionate and devoted to innovative products but also innovative business models. We don’t believe today’s corporate models should be eliminated, but that the time for a new kind of venture has come. Something that fits the new model of the sharing economy better, something in between an LLC and a non-profit organization. 

Shifting minds and making traditional investors a part of the token economy with a community-centric mindset is a tough challenge and will not happen overnight.

In our view, the future success of the CHSB token will be linked to a few principles:

  1. Have Incremental Utilities: as the technology supporting the SwissBorg ecosystem evolves, the spectrum of token utilities have to broaden as well. The token has to be at the centre-stage of any exchange of values between the SwissBorg DAO and its participants. At SwissBorg, we already have multiple utilities in our product backlog in addition to the referendums and membership utility.
  2. Accelerate the decentralization of the ecosystem: become an incentive mechanism for participants to contribute to the growth of the ecosystem. (I.e: refer friends, educate the community through videos and our community app, get people to commit code on Github.)
  3. Reward participants for their loyalty: Large technology companies like Google and Facebook offer extremely valuable free products. Despite this, they have sometimes come under fire for making billions of dollars while early adopters only receive the free service. A token is s technical way for tech companies (and open source projects in general) to spread the wealth and align their user base behind their success. We believe in increasing the CHSB value as the community grows and provide mechanisms for staking and other forms of loyalty.
  4. Ultimately, become the symbol of the value of the DAO: when the 3 previous conditions are fulfilled, a real token economy takes place within the DAO and, the more the participants experience its value,  the more they interact with the token and eventually understand the underlying concepts supporting the existence of the DAO. Thus, being a token holder is a source of pride and the living proof of true alignment between the DAO and its participants.

“ A token is a unit of value that an organization creates to self-govern its business model, and empower its users to interact with its products, while facilitating the distribution and sharing of rewards and benefits to all of its stakeholders.”

“The key objective of a DAO is value creation or production, and to make that happen, there needs to be a specific linkage between user actions and the resulting effects of those actions on the overall value to the organization.”

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